Grasim registers 89 percent growth in net profit

Mumbai, Apr 25 (UNI) The Aditya Birla group promoted Grasim registered a net profit of Rs 559 crore with a growth rate of 60 percent for the quarter ended March 31 while net revenue reached Rs 4,107 crore from the last year's margin of Rs 2,926 crore.

Announcing the results here today, D D Rathi, director (finance) of the Grasim said the consolidated revenue has grown 40 percent.

This apart, the company also registered an annual net revenue growth of 38 percent from Rs 10,275 in financial year (FY) 2006 to Rs 14,167 crore in FY 2007.

The net profit margin has also been increased from Rs 1,041 crore to Rs 1,968 crore, with a growth of 89 percent.

The company's growth was prominently driven by its Vicose Staple Fibre (VSF) and cement business.

There was an annual increase of three percent in sales volumes that touched 250,725 tonnes this year.

The company paid an interim dividend at 275 per cent for FY 2007 and said the interim dividend will be treated as the final dividend.

The sponge iron production, which was increased by 54 percent during the quarter year also contributed to a 79 percent increase in sales volume.

However, the operations met an impediment during the year owing to the inadequate availability of natural gas and sharp increase in the cost of iron ore and natural gas, he added.

UNI